Orbotech (NASDAQ: ORBK) and FARO Technologies (NASDAQ:FARO) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
This is a breakdown of recent ratings and recommmendations for Orbotech and FARO Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Orbotech currently has a consensus price target of $38.83, indicating a potential upside of 2.63%. FARO Technologies has a consensus price target of $41.00, indicating a potential upside of 22.75%. Given FARO Technologies’ higher probable upside, analysts clearly believe FARO Technologies is more favorable than Orbotech.
Earnings & Valuation
This table compares Orbotech and FARO Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Orbotech||$818.31 million||2.21||$158.40 million||$1.86||20.34|
|FARO Technologies||$335.54 million||1.66||$13.50 million||($0.03)||-1,112.96|
Orbotech has higher revenue and earnings than FARO Technologies. FARO Technologies is trading at a lower price-to-earnings ratio than Orbotech, indicating that it is currently the more affordable of the two stocks.
This table compares Orbotech and FARO Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
71.6% of Orbotech shares are owned by institutional investors. Comparatively, 92.8% of FARO Technologies shares are owned by institutional investors. 10.4% of Orbotech shares are owned by insiders. Comparatively, 2.4% of FARO Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Orbotech has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, FARO Technologies has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Orbotech beats FARO Technologies on 10 of the 13 factors compared between the two stocks.
Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.
About FARO Technologies
FARO Technologies, Inc. designs, develops, manufactures, markets and supports software driven, three-dimensional (3D) measurement, imaging and realization systems. The Company operates in three segments: Factory Metrology, Construction BIM-CIM and Other. It sells its products through a direct sales force across customers in a range of manufacturing, industrial, architecture, surveying, building construction and law enforcement applications. Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for Computer-Aided Design-based inspection and/or factory-level statistical process control and surveying. It operates in international markets throughout the world and maintain sales offices in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, the Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the United Kingdom, the United States and Vietnam.
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